DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

12 Months Ended

Dec. 31, 2017

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

DEFERRED POLICY ACQUISITION COSTS AND VALUE OF BUSINESS ACQUIRED

Deferred Policy Acquisition Costs

The balances and changes in DAC are as follows:

	Successor Company
	As of December 31, 2017			As of December 31, 2016
	(Dollars In Thousands)
Balance, beginning of period	$	572,328		$	288,611
Capitalization of commissions, sales, and issue expenses	333,250			327,938
Amortization	(52,559		)	(48,286		)
Change due to unrealized investment gains and losses	(15,234		)	4,065
Balance, end of period	$	837,785		$	572,328

Value of Business Acquired

The balances and changes in VOBA are as follows:

	Successor Company
	As of December 31, 2017			As of December 31, 2016
	(Dollars In Thousands)
Balance, beginning of period	$	1,447,501		$	1,270,197
Acquisitions	—			285,092
Amortization	(25,662		)	(100,778		)
Change due to unrealized investment gains and losses	(60,047		)	(7,010		)
Balance, end of period	$	1,361,792		$	1,447,501

Based on the balance recorded as of December 31, 2017 (Successor Company), the expected amortization of VOBA for the next five years is as follows:

	Expected
Years	Amortization
	(Dollars In Thousands)
2018	$	122,802
2019	118,196
2020	103,120
2021	90,544
2022	83,333